Supporting Transit Commutes Act
Supporting Transit Commutes Act
Plain Language Summary
# Supporting Transit Commutes Act - Summary **What the Bill Does** The Supporting Transit Commutes Act would allow employers to claim tax deductions when they pay for employee transportation benefits. Specifically, employers could deduct costs for providing commuter services like vanpools or transit passes that help employees get to and from work. The deduction would be capped at $325 per month per employee (adjusted annually for inflation), and would be limited to 50% of that amount if employees contribute through salary reduction agreements. **Who It Affects** This bill primarily affects employers who subsidize commuting costs for their workers, as well as employees who receive these transportation benefits.
It could incentivize companies to offer or expand transit benefits by making them more affordable from a tax perspective. Employees using public transit or vanpools could indirectly benefit if employers expand these programs due to the tax advantage. **Current Status** The bill was introduced by Representative Jake Auchincloss (D-MA) in the 119th Congress and is currently in committee, meaning it has not yet been voted on by the full House of Representatives. No further action has been taken at this time.
CRS Official Summary
Supporting Transit Commutes Act This bill provides employers a tax deduction for certain transportation fringe benefits given to employees.Under the bill, employers may deduct costs for providing employees transportation in a commuter highway vehicle (e.g., van pool) between the employee’s home and place of work or a transit pass. The amount of the deduction cannot exceed the aggregate exclusion amount for such fringe benefits ($325 per month per employee in 2025 and adjusted annually). Further, under the bill, the deduction cannot exceed 50% of such amount for transportation fringe benefits provided under a salary reduction agreement.
Latest Action
Referred to the House Committee on Ways and Means.